CFIUS FIRRMA Tool Updated to Include New Critical Technology Rule for Mandatory Filings
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Today, a new rule published by the US Treasury Department goes into effect, modifying the mandatory Committee on Foreign Investment in the United States ("CFIUS") filing requirements for certain foreign investments in US businesses involved with critical technologies. The new rule shifts the critical technology mandatory filing standard away from the previous industry test and focuses on whether the US business's products and technology would require a license for export to the foreign investor and its substantial owners. White & Case's CFIUS FIRRMA Tool has been updated to incorporate this change. The tool provides an online, step-by-step analysis of a contemplated transaction in order to assist users in determining whether the transaction could be subject to CFIUS's jurisdiction and if mandatory filing requirements would apply.
Updated White & Case CFIUS FIRRMA Tool
As we previously reported, the Treasury Department issued a proposed rule on May 21, 2020, to modify the mandatory filing requirements for certain foreign investments in US businesses involved with critical technologies (i.e., primarily items, technology and services subject to certain US export controls). The final rule, largely unchanged from the proposed rule, takes effect today.
The White & Case CFIUS FIRRMA Tool has been updated to incorporate the new rule. Accordingly, the updated tool will continue to guide users through the essential elements of CFIUS's jurisdiction under both CFIUS's investment regulations and its real estate regulations in order to assist in determining whether the transaction could fall within the scope of CFIUS's jurisdiction. The CFIUS FIRRMA Tool, which can be used on a computer, tablet, or smart phone stands alone as the go-to interactive CFIUS guide favored by industry, government and legal practitioners.
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